JP Morgan launches blockchain platform for INR-USD clearing in GIFT City

[gpt3]rewrite

Mumbai: JP Morgan, the largest bank by market capitalization, has introduced a real-time interbank settlement pilot project for US dollars in Gujarat International Finance Tec-City (GIFT City) through its blockchain platform, Onyx. The six banks that have joined the platform are Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank, JPMorgan Chase Bank’s Gift City branch and Yes Bank.
The approval by the International Financial Services Center Authority (IFSCA) has paved the way for interbank transactions in US dollars on the blockchain platform.
One of IFSCA’s goals is to incubate new financial technologies supported by a comprehensive and consistent regulatory framework based on global best practice. I look forward to the performance of this system which promises round-the-clock and instant USD clearing and which will be piloted in IFSCA’s Regulatory Sandbox,” said Injeti Srinivas, Chairman of IFSCA.
Onyx by JP Morgan, established in 2020, has been a frontrunner in blockchain-based platforms for wholesale payment transactions.
Currently, anyone wishing to participate in the clearing and settlement of rupee-dollar transactions must open a foreign nostro account. Also, such Nostro account-based settlement and settlement is not available on
weekends and currency holidays.
The pilot project will establish a blockchain-based infrastructure that can support currency transactions and enable settlement of tokenized assets in the future.
Naveen Mallela, managing director and head of Onyx Global Coin Systems at JP Morgan, told TOI that the development of a blockchain-based payment network aligns with GIFT City’s vision of becoming a global financial and IT hub.
“India arguably has the most advanced global payments infrastructure, but wholesale payments still run on the traditional rails. The Onyx blockchain platform we have deployed acts as a 24X7 clearing network for not only the banks within the IFSC, but between the IBUs and other entities on the network globally,” Mallela said.
He added that in the future the platform can work for any type of asset – CBDC, currency or government securities that can be tokenized and transactions settled on a real-time basis without the need for a central counterparty. It will also be possible for banks and companies to make new types of transactions such as intraday repos to meet temporary liquidity needs.

[gpt3]

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *